Let’s say it loud, recruiting is a difficult task!
Being a recruiter its terribly frustrating not to get the expected outcome even after putting significant efforts, time, and money in developing a good recruitment strategy. Because if a recruitment process unable to bring the right talent, the whole organization suffers.
What is the actual reason behind the failed recruitment strategies? How to figure out what makes a good hiring strategy and what needs to be focused to hire the right candidates.
The answer to all these questions is – Know your key recruitment metrics to design a successful recruitment strategy.
In order to measure the effectiveness of your recruitment process, you must decide the key recruitment metrics. The recruitment metrics help you have accurate data and measurable hiring goals to avoid the risk of wasting time, money, and efforts.
However, you would have no time left for executing your recruitment strategies if you keep track of every recruitment metric. Here in this post, you can check the most important recruitment metrics.
So let’s understand them one by one:
1. Recruitment goals:
Establishing recruitment goals and objectives are essential for developing successful hiring strategies. Yet most of the recruiters do not decide their recruitment goals and objectives before they start hiring and most of them fall flat.
Deciding your hiring objectives should be a base for every recruitment strategy. To decide your hiring goals just get the answers to the questions like what is the purpose of recruiting? What do you want to achieve by hiring? What results would you like to get?
A clear goal not only helps you develop a robust hiring strategy but also channelizes your efforts and help you measure success or failure as well as return on investment.
2. Quality of hire:
Measuring the quality of hire helps you understand the value a candidate brings to your organization. Specifically, how much a new employee contributes through his/her performance during the tenure. It is the most difficult recruitment metric to measure because it requires a long term commitment to decide the efficiency of a new hire.
The way quality of hire is important to measure the caliber of a new hire the same way it is responsible for deciding the success or failure of the overall recruiting function.
Ramp-up time, job performance, culture fit, employee engagement are the common metrics to measure the quality of hire.
(Job Performance + Ramp-up Time + Employee Engagement + Cultural Fit) / N
N = number of indicators
Time-to-hire is as important as the quality of hire. Time-to-hire means the number of days from the moment a candidate enters the pipeline to the moment the candidate accepts the job offer.
Time-to-hire is important to identify the loopholes in your hiring process and targets areas of improvement. It will help you find out answers to questions such as:
How much time required to hire a job fit candidate?
How much time required to hire for the same job role?
How long does it take to move a candidate from one stage to another?
When it comes to measuring time-to-hire the common metrics are measure time-per-stage & different roles and/or departments.
Time-to-hire = Day candidate accepted the offer – Day candidate entered the pipeline
Measuring time-to-hire is a great step to stay on top of your hiring process. This metric provides you inputs into the great and not-so-great parts of our recruitment process.
How much it takes to make a candidate go through your recruitment funnel? It takes the total costs spent on recruiting for an open role which includes:
External cost – Advertising cost, Agency fees, Candidate expenses, Training cost, etc.
Internal cost – Time spent by recruiter & manager (avg. wages * hrs spent), New hire onboarding time, lost productivity, etc.
(Total internal recruiting costs + external recruiting costs) / (total # of hires in a given time frame)
Cost-per-hire recruiting metrics help companies measure how much it cost them to hire a new employee. It can vary depending on the size of the organization, the level of the position, and the capability of a recruitment team.
Being a recruiter you must be facing constant pressure to reduce cost per hire. The right way to control your recruiting cost is to create your detailed budget while keeping your average cost required to hire a new employee in mind. Read more here…